Federal Government commits extra $40m to car industry fund

The Federal Government will pour an extra $40 million into a fund to help car industry workers who will lose their jobs.

The Growth Fund was set up in response to decisions by Ford, Holden and Toyota to stop making cars in Australia.

It is designed to help retrain workers and assist car components companies find new markets.

The increase takes the Commonwealth's contribution to $100 million, with an additional $55 million coming from the Victorian and South Australian governments, Holden and Toyota.

Victorian Premier Denis Napthine says the extra money will be welcomed by workers and the industry.

"This is about assisting the workers affected by these changes. This is about assisting businesses affected by these changes," he said.

"This is about providing new and even better opportunities for those workers and those businesses."

South Australia, which has been asked to contribute $12 million to the fund, has not yet committed to the revised recovery package.

Treasurer Tom Koutsantonis says he wants to see details of how the fund will be divided.

"I welcome their increased investment ... I think everyone realised, including the Commonwealth, that their initial investment was insignificant and not good enough," he said.

"I think they were slightly embarrassed by what they had invested - $100 million is better, but we've got to make sure before we co-invest that we get the appropriate amount spent in this state."

But Mr Koutsantonis appears to be at odds with Federal Industry Minister Ian Macfarlane, who believes an agreement has been reached.

"They have agreed," he said.

"I spoke yesterday to Tom Koutsantonis, the Treasurer, and also the Resources and Energy Minister - they have agreed.

"But there are further discussions going on, both with Victoria and South Australia, about the potential expansion of the scheme."

He added: "I'm confident that over the next four years we'll be able to put in place a transition which minimises the pain to those individually involved, but gives us the best opportunity in the long term."